Corruption-A Worm In The Fabrics Of Economic Development

in LeoFinance10 months ago


A first class degree holder went for a job hunt. He boldly walked into an office, presented his resume and relaxed.The manager of the firm approached him with a bright face and said to him, our firm needs your kind. Your resume got you the job. He was so elated that he leaped out of the office with joy without waiting to hear further instructions.

The next day, he went back to that office and the real deal was discussed. One of the requirements was that he would pay half a million for processing his documents and 1.5 million worth of their currency as a kickback for securing the job. Sadly he left and his slot was sold out to a fellow course ate who passed out with a lower grade who could afford the money.

Another lady studied Music and passed out with a lower grade but she occupied a sensitive position in a bank because she has a godfather somewhere Pioneering her success.

In the two scenarios, they both share one thing in common. Some people who are most qualified to get a job or occupy a strategic position in government or other sectors of the economy based on merit are denied their chances because they could not afford to pay a certain amount of money as a bribe or grease the boss’s palms. This is called corruption.

Definition

Corruption is a dishonest or a nefarious conduct usually carried out by persons in authority basically for the selfish gain. It has different forms which includes abuse of power, bribery, money laundering, kickbacks, Nepotism etc.

Abuse of power
Some use their position of authority to carry out their corrupt practices just to fill their pockets. It also involves actions that contradict ethics which make people go beyond their bounds of authority and trample on people's fundamental human rights for personal gain and this leads to a sad consequence to individuals and the society at large.

Bribery
It usually involves giving, receiving or requesting for valuables, money or gifts to influence the decisions or actions of a person in authority. Its intention basically is to gain an undue advantage or a preferential treatment through the exchange of bribes. This alters decision making and affects this society negatively.

Money Laundering

Its perpetrators furnish the source of the unlawfully obtained money with a false appearance by making its pass through legitimate channels such as big companies or banks. It makes the flow of the transaction look clean. Individuals or organizations involved enjoy the profit of such unlawful practices without attracting any suspicion. This ugly practice often involves offshore accounts to hide the original source of the money which makes it difficult for authorities to trace the illegal act that generated the money and this has a ripple effect on the economy and globally.

Kickbacks

An illicit payment or gift given to the person of influence in order to secure a business arrangement or a job. The individual receiving kickbacks would reciprocate by providing services or making decisions that would benefit or favor the giver. This form of corruption in many sectors cripples competitions thus allowing unqualified or inexperienced persons to occupy a sensitive position of authority and this is a recipe for disaster.

Nepotism

Here the person in authority favors a family member or relative when it comes to employment, promotion or other advantages. Preferences are given to persons not based on merits rather they are typically family members or relatives. This can slow down or erode an organizational proficiency because an amateur is piloting it's affairs.

Effects Of Corruption on the Economy

Corruption has serious adverse effect on the economy which includes

Lack Of Trust
The public and investors loses trust institutions undermining their development. And this is discouraging to both local and foreign investors. There is a saying that you do not know where to stand with a liar. This is true because investors are not willing to invest with an economy know for their high corrupties practices which are unchecked by authorities.

Uneven Distribution of Resources

Resources alocated for a particular project is used for personal interests and not for the growth of the economy. This can reduce production which lead to scarcity of goods and services and this encourages monopoly which is another breeding ground for corruption

Laxity Of The Law

Just because the rule of law has been trampled and swept under the carpet, it makes it difficult for businesses be its big or small to operate in a transparent Legal grounds. There are no laws that protects their interest or punishes them for any illegal activities. Consumers too are at risk of buying counterfeit goods and unhealthy food they consume. Because of this locally made goods cannot be exported.

Poor Public Service

Amateur public offices are inefficient in their services. Essential services like education, healthcare and public infrastructure which are meant to alleviate poverty amongst for the teaming populate do not receive the attention it deserves. One of the reason might be that family members, relatives or acquitances with little or no experience in the job are serving as heads of operations in those sectors. For example, imagine a retired soldier serving as a Minister of Education or a professor in accounting serving as Defense Minister.

Discourages Innovations

Innovators and entrepreneurs who cannot afford kickbacks or bribes dies with the ideas because they do not have a person in authority to promotes their ideas. These ideas are at times a solution to some challenges facing the economy. These ideas or innovations are neglected because a group of cabal is feeding huge from the system. They fight tooth and nail against any new idea or often incriminate them.

Nobody is immuned to the ripple effect caused corruption. It affects both the poor and the rich, and collectively it could be curbed or reduced to a minimal. It starts with the family, an honest family contributes to an honest community. On the other hand, the government should stick to the rule of law and take drastic measures to put illegal activities in check. In a normal working administration every citizen is under the ambit of the law, if this is maintained corruption could be reduced.

(Credit)

Thumbnail gotten from Pixabay

Second image gotten fromPixabay

Posted Using InLeo Alpha

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